Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the progress he has made to update and modernise company law so that the accounting profession will be obliged to give an accurate account of the financial state of business, in view of the recent collapse of financial companies including banks; and if he will make a statement on the matter. [47330/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The onus in company law is for the Directors of companies to prepare the accounts of companies on an annual basis. There is a requirement for these accounts to give a “true and fair view” of the financial position and performance of the company. Accounting rules such as International Financial Reporting Standards (IFRS) adopted by the EU are required to be used in the preparation of the consolidated accounts of companies admitted to trading on a regulated market, in order to give a true and fair view. IFRS standards are set by the International Accounting Standards Board (IASB) an independent standard-making body. It is the function of external auditors to express their opinion as to whether these accounts provide a true and fair view.

Aspects of an accounting standard relating to the fair valuation of financial assets has been overhauled in a new standard, while issues in relation to loan loss-recognition continue to be examined by the IASB, with the intention of revising this standard. As regards the functions of external auditors, EU Commission proposals in the aftermath of the financial crisis to improve audit quality continue to be considered at Council Working Group level in Brussels. My Department is continuing its work as regards the implementation of a Quality Assurance provision in respect of the audit of Public Interest Entities.